Question

8.
What do you mean by terms of trade?
क्रय शक्ति समता सिद्धांत का प्रतिपादक कौन है ?
Who propounded the theory of purchasing powarparity?​

Answer 1

Explanation:

Terms of trade are defined as the ratio between the index of export prices and the index of import prices. If the export prices increase more than the import prices, a country has a positive terms of trade, as for the same amount of exports, it can purchase more imports.